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HENGYUAN REFINING COMPANY BERHAD I 33

festive celebrations with our neighbours. However, in view of
• In FY2020, we continued to track water usage very closely COVID-19 pandemic, most of the activities had to be scaled
and optimise water consumption in various parts of the down and strict preventive measures were observed to protect
refinery. This includes optimising water usage at specific the health and safety of our community.
high-consumption equipment and maximising recycling
of water. However, raw water consumption in FY2020 was STRATEgIC DIRECTION 1
higher than FY2019 by 0.2 million m 3 due to the startup Continuous Business and Productivity Improvement
of a new Wet Gas Scrubber in late 2019 (in compliance
with the Clean Air Regulations). Our effluent water also Initiatives implemented in FY2020 under this strategy included:
continues to comply to all the parameters under the
Environmental Quality (Industrial Effluent) Regulations 2009. • Continued pursuit of HRC’s Business Improvement Plan
(BIP) to debottleneck the plant’s constraints to enable
• HRC has a comprehensive in-house capability for Oil Spill higher margin generation. Execution of BIP tactics
Response with immediate action to be taken accordingly. progressed well during the year and yielded good benefits.
We recorded one (1) Oil Spill in FY2020 where HRC’s • Growing crude intake capacity and widening of operating
Emergency Management Team was triggered for Tier windows.
2 Response and HRC immediately deployed aid and
worked with local authorities to contain and stop the leak. • Automating work processes to unlock greater efficiencies
Actions were taken to ensure relevant risks are addressed and cost savings. In FY2020, the in-house digitalisation of
to prevent any recurrence of the incident. Incident Management and Assurance Excellence (iMax)
through office automation has enabled all reported
• A “Cleaner Air for All” environment campaign was
conducted in the month of September 2020 with the incidents and their immediate, interim and long-term
aim to raise awareness and share information related to control measures to be tracked until closure in the
the new Clean Air Regulation 2014. In the spirit of the incident tracking management systems, and contributed
new normal, the virtual campaign hosted an online significant cost savings of RM170,000 per annum.
Environment chat session called “Borak Santai” with The focus on business process automation is an on-going
in-house panellists to discuss on the implementation process in HRC.
of green initiatives at home and improvement of the
Company’s environmental performance. STRATEgIC DIRECTION 2
Optimise margins and Operational Expenditures (OPEx)
Stakeholder value Initiatives implemented in FY2020 under this strategy included:
• Increasing commercial value through hedging product
HRC’s redefined strategic framework positions stakeholder cracks and inventory value. This managed to provide
value as an important focus area. We intend to deliver financial protection through a challenging pandemic year.
sustainable value to all stakeholders including our
shareholders and investors. In FY2020, we focused on further • Actively reviewing production planning based on margin
strengthening our cash flow, driving costs down in financing and demand, and as part of optimisation, we have taken
and contract deals, and implemented further protection of the initiative to reduce production when margin was not
margins. Investments in automation were also explored for favourable.
more accurate and cost-efficient processing. • Increasing overall product value by reducing Jet-A1
production by reoptimising middle distillates blend and
Beyond this, we are committed to be socially responsible in
our business affairs and make a positive contribution through outlets, and maximising Propylene production.
social investment. As a refinery, we continuously maintain • Assessment and implementation of margin optimisation
a responsive community feedback mechanism and commit initiatives in on-going projects.
to acknowledging complaints immediately any hour of the • Focused on cost optimisation of third party spending to
day or night and addressing complaints as soon as possible. achieve structural cost decrease.
Other ways we engage with the community are through
outreach programmes, community engagement activities and